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Corporate Series – Part 1 – What is a Company?

A company is a type of business organization that is formed to carry out specific activities, such as providing goods and/or services.

A company operates as a separate legal entity, meaning it has its own rights and responsibilities, separate from the people who own or manage it. The owners of a company are called shareholders, and they invest money into the business by buying shares, which represent a portion of the company’s ownership. In exchange, shareholders may receive a share of the company’s profits, called dividends. A company is managed by a group of people called directors, who make decisions on how the business should run. Companies can range in size from small, locally owned businesses to large multinational corporations.

 

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